(c) “Additional Services” means such additional Products or Services including Support Services to be provided by Smoothwall as either agreed between the parties or requested by the Customer and provided by Smoothwall in accordance with clause 10.

(d) “Agreement” means the Quotation and the UK Terms and Conditions as supplemented by any of the Software Licence, the Service Level Agreement, the Hardware Limited Warranty, the Third Party Software Licence and the Open Source Software Licence as are applicable to such of the Products or Services set out in the Quotation.

(e) “Business Day(s)” means Monday to Friday except for public holidays in England.

(g) “Confidential Information” means any information, however conveyed or presented, that relates to the business, affairs, operations, customers, processes, budgets, pricing policies, product information, strategies, developments, trade secrets, know-how, personnel and suppliers of the disclosing party including Customer Personal Data and Smoothwall Personal Data and in the case of Smoothwall any information recorded in writing and electronically relating to and forming part of the Products, together with all information derived by the receiving party from any such information and any other information clearly designated by a party as being confidential to it (whether or not it is marked “confidential”), or which ought reasonably be considered to be confidential.

(h) “Control” means the beneficial ownership of more than 50% of the issued share capital of a company or the legal power to direct or cause the direction of the general management of the company, and controls, controlled and the expression change of control shall be construed accordingly.

(i) “Privacy and Data Protection Requirements” means the Data Protection Act 1998, the Data Protection Directive (95/46/EC), the Regulation of Investigatory Powers Act 2000, the Telecommunications (Lawful Business Practice) (Interception of Communications) Regulations 2000 (SI 2000/2699), the Electronic Communications Data Protection Directive (2002/58/EC), the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2426/2003) and all applicable laws and regulations relating to the processing of personal data and privacy, including where applicable the guidance and codes of practice issued by the Information Commissioner or any other supervisory authority;

(j) “Delivery Date” means such estimated date, if any, for dispatching or making available for collection of the Products or commencement of the provision of the Services as set out in the Quotation or as agreed in writing between the parties after the Customer has accepted the Quotation.

(k) “Hardware” means Smoothwall Hardware and Third Party Hardware.

(l) “Initial Term” means the term of this Agreement in which Smoothwall supplies the Products and Services and the initial duration of the applicable Software Licence and Third Party Software Licence set out in the Quotation.

(m) “Open Source Software” means all software which comprises part of the Products or Services that has been licensed by its authors or owners under an Open Source Licence.

(n) “Open Source Software Licence” means such applicable public licence terms and conditions by which the authors grant to the general public a right to use their software freely and allows such software to be changed and shared (in modified or unmodified form) by anyone such open sources software such as the GNU General Public License, the GNU Lesser General Public License (LGPL) or other open source licences.

(o) “Payment Terms” means the provision set out in the Quotation and clause 12 of the UK Terms and Conditions.

(p) “Price” means the price payable for the Products and Services set out in the Quotation.

(q) “Products” means such Hardware, Software including any Open Source Software that is incorporated and forming part thereof and Third Party Software set out in the Quotation to be provided by Smoothwall to the Customer in accordance with this Agreement as may be amended by any Additional Services from time to time.

(r) “Proprietary Rights” means any registered or unregistered letters patent, patented articles, designs, trademarks, copyright in all specifications, drawings and technical descriptions, computer software and databases, database rights, moral rights, inventions whether or not capable of protection by patent or registration, rights in commercial information and technical information, including know-how, research and development data, manufacturing methods and data, specifications and drawings, formulae, algorithms, prototypes and research materials, and other intellectual property rights, whether registered or unregistered and including applications for the grant of any such assets or rights of the foregoing descriptions and all rights or forms of protection having equivalent or similar effect anywhere in the world.

(s) “Quotation” means the document issues by Smoothwall to the Customer that sets out the Products and/or Services, the length of the Initial Term, Price and Payment Terms upon which Smoothwall is willing to supply the Customer. A Quotation may be in the form of a Smoothwall quotation identified as such or may be in the form of a response by Smoothwall to a Customer’s invitation to tender or request for information or similar procurement documentation issued by the Customer.

(t) “Service Level Agreement” or “SLA” means the description of the Support Services provided to support and maintain some or all of the Products.

(u) “Services” means such services including consultancy, delivery, installation, training, managed services, cloud/hosted services or Support Services set out in the Quotation to be provided by Smoothwall to the Customer in accordance with this Agreement as may be amended by any Additional Services from time to time.

(v) “Smoothwall Hardware” means all Smoothwall branded hardware provided as part of and for use in the provision of the Software, Third Party Software, Open Source Software and Services including information and communication technology, network components and other computing devices.

(w) “Software” means all proprietary software, excluding Third Party Software, owned by Smoothwall, licensed to the Customer pursuant to the Software Licence, save for any Open Source Software that is incorporated and forming part thereof, and which comprises part of the Products or Services.

(x) “Software Licence” means the software licence granted to the Customer by Smoothwall governing the use that the Customer may make of the Software.

(y) “Support Services” means the maintenance and technical support services described in the Service Level Agreement.

(aa) Third Party Hardware means hardware other than Smoothwall Hardware manufactured or supplied by a third party and provided as part of and for use in the provision of the Software, Third Party Software, Opens Source Software and Services including information and communication technology, network components and other computing devices.

(bb) “Third Party Software” means all proprietary software, excluding all Open Source Software, owned by or licensed to the Customer from a third party (whether or not supplied by Smoothwall) pursuant to the Third Party Software Licence and which comprises part of the Products or Services.

(cc) “Third Party Software Licence” means the software licence granted to the Customer by a third party governing the use that the Customer may make of the Third Party Software, which is available to the Customer from Smoothwall on request.

(dd) “UK Terms and Conditions” means the terms and conditions set out in this document governing this Agreement.

1.2 Interpretations

(a) Clause, schedule and paragraph headings shall not affect the interpretation of this Agreement.

(b) A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

(c) A reference to a company shall include any company, corporation or other body corporate, wherever and however incorporated or established.

(d) Unless the context otherwise requires, words in the singular shall include the plural and in the plural include the singular.

(e) Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.

(f) A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time.

(g) A reference to writing or written includes faxes and email.

(h) References to clauses are to the clauses of these UK Terms and Conditions.

(i) General words (such as, for example, includes and including) shall not be given a restrictive meaning by reason of the fact that they are followed by particular examples intended to be embraced by the general words.

(j) A change in the legal status of the parties shall not affect the validity of this Agreement and this Agreement shall be binding on the parties and their respective permitted successors and assignees.

(k) In the event of a conflict between the various constituent parts of this Agreement, the following order of precedence shall apply:

(i) the Quotation;

(ii) the UK Terms and Conditions;

(iii) the Software Licence;

(iv) the Service Level Agreement;

(v) the Hardware Limited Warranty;

(vi) the Third Party Software Licence; and then

(vii) the Open Source Software Licence.

2. Application of Conditions

2.1 The Quotation and the UK Terms and Conditions apply to and are incorporated into this Agreement.

2.2 The Hardware Limited Warranty applies to any Smoothwall Hardware that is forming part of the Products and be supplemental to and be incorporated into this Agreement, if Smoothwall Hardware is supplied under this Agreement.

2.3 The Software Licence applies to any Software that is forming part of the Products and be supplemental to and be incorporated into this Agreement, if Software is supplied under this Agreement.

2.4 The Open Source Software Licence applies to any Open Source Software that is forming part of the Products and be supplemental to and be incorporated into this Agreement, if Open Source Software is supplied under this Agreement.

2.5 The Third Party Software Licence applies to any Third Party Software that is forming part of the Products and be supplemental to and be incorporated into this Agreement, if Third Party Software is supplied under this Agreement.

2.6 The Service Level Agreement applies to any Support Services that are forming part of the Services and be supplemental to and be incorporated into this Agreement, if Support Services are supplied under this Agreement.

2.7 The Quotation, the UK Terms and Conditions and as applicable the Hardware Limited Warranty, the Software Licence, the Open Source Software Licence, the Third Party Software Licence or the Service Level Agreement prevail over any inconsistent terms or conditions in or referred to in the Customer’s purchase order, invitation to tender, request for information or similar procurement document issued by the Customer to Smoothwall, confirmation of order, or specification, or implied by law, trade custom, practice or course of dealing. No amendment of these terms and conditions will be valid unless confirmed in writing on or after the date hereof by authorised representatives of both parties in accordance with clause 10 or clause 11.

3. Basis of Sale

3.1 Any Quotation is valid for a period of 30 days only unless otherwise stated in the Quotation, however Smoothwall reserves the right to withdraw a Quotation at any time prior to that by notice to the Customer as long as Smoothwall has not received a valid, legally binding order from the Customer. Any order received by Smoothwall from the Customer in respect of a Quotation after expiry of the validity of the Quotation does not result in a legally binding Agreement, unless such order is expressly confirmed by Smoothwall Any subsequent Quotation that Smoothwall may issue to the Customer for the same or a substantially similar procurement matter of the Customer automatically invalidates any previously issued Quotation, whether or not such subsequent Quotation states to be a variation or amendment to the previous Quotation.

3.2 All orders placed with Smoothwall by the Customer for Products or Services must reference the Quotation and shall constitute an acceptance of the Quotation to Smoothwall, subject to availability of the Products and provided always that this Agreement only comes into being and is valid and binding on both parties on the basis that any wording or terms and conditions or similar on or referenced in the Customer order or acceptance contrary to or inconsistent with the provisions of clause 2 does not form part of this Agreement and receipt thereof is acknowledged by Smoothwall in writing.

3.3 In the case of orders placed via the Smoothwall PartnerNet, the initial Customer application for Products will constitute a request for a Quotation and the confirmation by Smoothwall detailing the Products and Services together with Initial Term, the Price and Payment Terms shall constitute the Quotation. Such on-line Quotation will be deemed to have been accepted by the Customer, unless the Customer has given written notice within 7 days to Smoothwall that it is not accepting the Quotation and prior to such written notice has not done any other act demonstrating acceptance, as for example having downloaded any Software, Open Source Software or Third Party Software or requested supply or delivery or any of the Products or Services. Any other email notification from Smoothwall, its agents or servants does not constitute order acceptance, and in any event only Smoothwall’s ordering documents and these terms and conditions (and not the Customer’s) apply to the sale.

3.4 The Delivery Date will be set out in the Quotation or, if not, Smoothwall will agree with the Customer the Delivery Date after acceptance by the Customer of the Quotation and confirm the Delivery Date to the Customer in writing.

3.5 Smoothwall may deliver the Products and Services by separate instalments. A separate instalment does not constitute a separate contract and all instalments together form part of this Agreement as a single indivisible contract.

4. Specification of Hardware, Software and Services

4.1 Smoothwall will not be liable in respect of any loss or damage caused by or resulting from any variation for whatsoever reason in either Smoothwall or the manufacturer’s specifications or technical data and will not be responsible for any loss or damage resulting from curtailment or cessation of supply following such variation. Smoothwall will use commercially reasonable efforts to advise the Customer of any such impending variation as soon as it receives any notice thereof from the manufacturer.

4.2 Unless otherwise agreed in writing by Smoothwall, Products and Services are supplied in accordance with the manufacturer’s standard specifications. As these standard specifications may be improved, substituted or modified, Smoothwall reserves the right to change its quoted or listed price, or to charge accordingly in respect of any orders accepted for Products or Services of non-standard specifications and in no circumstances will it consider cancellation of such orders or the return of the Products.

5. Smoothwall Obligations

5.1 Smoothwall will use reasonable endeavours to

(a) deliver the Products in accordance with clause 7;

(b) provide the Services; and

(c) manage and complete the delivery of the Products and provision of the Services as set out in the Quotation.

5.2 Smoothwall shall ensure that its staff, while on the Customer’s premises, for the purpose of, or in connection with, this Agreement or the provision of the Products or Services, adhere to the Customer’s security procedures and health and safety regulations, as from time to time notified to Smoothwall or otherwise brought to the notice of Smoothwall or such persons. The Customer may remove or refuse admission to any person who is, or has been, in material breach of such procedures and regulations. However, Smoothwall shall incur no liability for any delay in performing or failure to perform its obligations under this Agreement as a result of compliance with the terms of this clause 5.2.

5.3 Smoothwall shall be responsible for complying with all applicable laws and regulatory requirements in connection with the performance of its obligations hereunder.

6. Customer Obligations

6.1 The Customer shall:

(a) co-operate with Smoothwall in all matters relating to the supply and delivery of the Products and the provision of the Services;

(b) provide in a timely manner such information as Smoothwall may request, and ensure that such information is accurate in all material respects;

(c) install the Products unless otherwise stated in the description of the Services to be provided or the Quotation;

(d) prepare the intended site and premises for installation and use of the Products and test and verify the Products on receipt in accordance with clause 7;

(e) properly use the supplied Products or Services and shall provide Smoothwall its agents or servants with all reasonable facilities and information to enable Smoothwall to perform its duties;

(f) promptly reporting to Smoothwall any suspected defect or error in any Products or Services of which the Customer becomes aware and confirming the details in writing.

6.2 The Customer is responsible for arranging shipping, carriage and insurance and the costs of unpacking and disposing of all packaging materials unless otherwise stated in the description of the Services or the Quotation.

6.3 The Customer shall allow Smoothwall to check the use of the Products and Services, and in connection with that purpose the Customer grants Smoothwall access to any premises controlled by the Customer in order to check that the Products and Services are being used in accordance with this Agreement.

6.4 The Customer is responsible for setting up and maintaining adequate disaster recovery and backup procedures in respect of its hardware, software and data and carry out a full backup prior to the provision of any of the Services and installing and connecting the Products to its hardware, software and data.

6.5 The Customer shall be responsible for complying with all applicable laws and regulatory requirements.

7. Delivery

7.1 Smoothwall shall use its reasonable endeavours to dispatch or to make available for collection the Products by the method most advantageous to Smoothwall on the Delivery Date provided always that the parties acknowledge that any such date is approximate only. If no dates are so specified, delivery shall be within a reasonable time of the acknowledgement of the Customer’s order. Time is not of the essence as to the delivery of the Products and Services and Smoothwall is not in any circumstances liable for any delay in delivery, however caused.

7.2 The Customer shall be responsible (at the Customer’s cost) for preparing the delivery location and have available all information reasonably required by Smoothwall 2 Business Days prior to the installation and connection Services and delivery, installation and connection of the Products and shall be responsible for:

(a) the provision of all necessary access and facilities;

(b) the engagement of all necessary third parties;

(c) the implementation of all changes agreed by Smoothwall and Customer that must be effected prior to the installation, as reasonably required for delivering and installing the Products and Services.

If Smoothwall is prevented from carrying out delivery or installation on the specified date because no such preparation has been carried out and the Customer and Smoothwall have not agreed to reschedule in accordance with clause 7.4, then the Customer shall be liable to Smoothwall the full Price calculated for delivery, installation and connection on that specified day and for the Price calculated and payable for any rescheduled date for delivery, installation and connection.

7.3 Delivery and, if applicable, installation and connection Services shall be effected during Business Hours (excluding bank or public holidays). Smoothwall may levy additional charges for any such Services made outside such hours at the Customer’s request.

7.4 A request by the Customer to reschedule a delivery or installation will only be considered by Smoothwall if made at least 2 Business Days before shipment of the Products and the Customer will be responsible for the reasonable additional costs of any rescheduled delivery or installation.

7.5 Smoothwall reserves the right to stop supplying Products or Services to the Customer at any time.

7.6 If Products have not been received, the Customer must notify Smoothwall within 7 days of the date of the invoice or within 14 days of the date of email shipment. If proof of delivery is required, this must be requested within 14 days of the date of the invoice.

7.7 In the case of Products supplied by electronic delivery where the Customer is to download a copy of the Products from a server operated by Smoothwall its servants or agents, the “Date of Shipment” will be the date and time when the electronic delivery was first made available for the Customer to download or when the Serial Number Licence Key was issued by Smoothwall or its authorised representative.

7.8 Failure of the Customer to download the Products before the electronic delivery download should “time-out” and be unavailable (typically 3 to 7 days) shall not constitute a breach of the Agreement. The Customer should contact Smoothwall by email using the appropriate email address as published on its website to notify Smoothwall and arrange for a new Electronic Download to be set-up.

8. Title and Risk

8.1 Risk shall pass to the Customer at the time the Products are dispatched or made available for collection by Smoothwall. Smoothwall accepts no liability for loss or damage caused by the carrier.

8.2 Subject to clause 14, title to the Products shall pass to the Customer only after Smoothwall has received in full in cleared funds the full Price together with all taxes and charges due in respect of the Products and any products supplied previously to the Customer have been paid in full.

8.3 Until title of the Products has passed to the Customer under clause 8.2, the Customer shall:

(a) hold the Products on a fiduciary basis as Smoothwall’s bailee;

(b) store the Products (at no cost to Smoothwall) in satisfactory conditions and separately from all the Customer’s other equipment or that of a third party, so that it remains readily identifiable as Smoothwall’s property;

(c) not destroy, deface or obscure any identifying mark or packaging on or relating to the Products; and

(d) keep the Products insured on Smoothwall’s behalf for its full price against all risks with a reputable insurer to the reasonable satisfaction of Smoothwall, ensure that Smoothwall’s interest in the Products is noted on the policy, and hold the proceeds of such insurance on trust for Smoothwall and not mix them with any other money, nor pay the proceeds into an overdrawn bank account, but if the Customer fails to do so, all monies owing by the Customer to Smoothwall shall (without prejudice to any other right or remedy of Smoothwall) immediately become due and payable.

8.4 The Customer’s right to possession of the Products before ownership has passed to it shall terminate immediately if any of the circumstances set out in clause 12.5 or clause 20 arise or if the Customer encumbers or in any way charges the Products, or if the Customer fails to make any payment to the Smoothwall on the due date.

8.5 The Customer grants Smoothwall, its agents and employees an irrevocable licence at any time to enter any premises where the Products is or may be stored in order to inspect it, or where the Customer’s right to possession has terminated, to remove it. All costs incurred by Smoothwall in repossessing the Products shall be borne by the Customer.

8.6 On termination of this Agreement for any reason, Smoothwall’s (but not the Customer’s) rights in this clause 8 shall remain in effect.

9. Acceptance

9.1 The Customer shall:

(a) test and inspect the Products and Services on delivery to ensure that they comply with applicable specification for each of the Products and Services; and

(b) if so requested by Smoothwall, give Smoothwall reasonable advance notice of such tests (which Smoothwall shall be entitled to attend).

9.2 The Customer shall notify Smoothwall within 30 days of delivery of any material non-compliance of any of the Products and Services with the applicable specification or within such other time scales and subject to such other obligations as the parties may have expressly agreed in writing in respect of user acceptance testing.

9.3 In the absence of any notification by the Customer to Smoothwall in accordance with clause 9.2 the Products and Services shall achieve acceptance by the Customer.

10. Additional Services

10.1 The Customer may from time to time request Smoothwall to supply Additional Services and shall submit to Smoothwall a request in writing.

10.2 Smoothwall shall use its reasonable endeavours to comply with the Customer’s request, but the Customer acknowledges that the ability of Smoothwall to supply such Additional Services shall depend on the availability of appropriate resources at the time in question.

10.3 Subject to clause 10.2, Smoothwall shall within a reasonable time provide a written estimate to the Customer of:

(a) the likely time required to implement the change;

(b) any variations to Price arising from the change;

(c) the likely effect of the change on the Products and Services; and

(d) any other impact of the change on the terms of this Agreement.

10.4 If the Customer wishes Smoothwall to proceed with the change, Smoothwall has no obligation to do so unless and until the parties have agreed in writing on the necessary variations to the Price and any other relevant terms of this Agreement to take account of the change.

10.5 The Customer shall pay Smoothwall on a time and material basis for any action, work, resources and services expended or performed in response to any Customer request for Additional Services or any changes to the Products or Services to be provided pursuant to this Agreement.

11. Prices

11.1 The Price payable for the Products and Services is as set out in the Quotation subject to the provisions of this clause 11 and is based on Smoothwall’s standard scale of charges in force on the date of this Agreement.

11.2 The Prices and any additional charges payable under this Agreement for any Additional Services to the Customer shall be determined in accordance with Smoothwall’s standard scale of charges in force at the time and agreed in writing before performance or supply by Smoothwall, and shall be charged and invoiced to the Customer by Smoothwall (and paid by the Customer) following agreement by Smoothwall and the Customer of the Quotation for such Additional Service. Such Quotation and Additional Services shall be deemed to vary this Agreement accordingly.

11.3 Smoothwall shall be entitled at any time before the period of 14 days immediately preceding the Delivery Date to vary the Price and any additional charges payable under this Agreement to reflect any changes in Smoothwall’s standard scale of charges and to give written notice of such variation to the Customer. This Agreement shall be deemed to be varied accordingly by such notice of variation unless the Customer shall within 7 days of the receipt of such notice terminate this Agreement by giving notice in writing to Smoothwall in which event neither party shall have any liability to the other in respect of such termination.

11.4 Smoothwall reserves the right, by giving notice to the Customer at any time before delivery, to increase the Price and any additional charges of such of the Products or Services as have not been delivered to reflect any material increase in the cost to Smoothwall which is due to market conditions or any factor beyond the control of Smoothwall (including without limitation any foreign exchange fluctuation, currency regulation, alteration of duties, change in legislation, change in third party costs, significant increase in the costs of labour, materials or other costs of manufacture), any change in delivery dates, quantities or specifications for the Products which is requested by the Customer, or any delay caused by any instructions of the Customer or failure of the Customer to give Smoothwall adequate information or instructions.

11.5 Smoothwall reserves the right to increase the Price and any additional charges at any time during this Agreement to the extent that the Prices are including estimates of likely use, scope, bandwidth, storage or other user accessible resources provided by Smoothwall, that are fully or partially based on the information provided by the Customer, which materially differ to the actual use, scope, bandwidth, storage or use of resources.

11.6 For ongoing Products and Services such as cloud/hosted services, maintenance, support, managed services, annual renewal, licences or subscriptions, Smoothwall reserves the right to change the Prices and any additional charges payable under this Agreement as from each quarter passing from the date of this Agreement in accordance with its then current standard charges. Any increase shall be notified in writing to the Customer at least 14 days in advance.

11.7 If Smoothwall is to charge for any Services to be provided under this Agreement on a time and materials basis, then Smoothwall will charge for the actual time spent in providing the Services to the Customer at the rates specified (as updated from time to time in accordance with this Agreement) or, if the rates are not specified at Smoothwall’s then current standard rates. The Price calculated on this basis will be due at the end of every month for everything done by Smoothwall during that month.

11.8 The Customer shall pay all costs (at Smoothwall’s then prevailing rates) and reasonable expenses incurred by Smoothwall for work carried out by Smoothwall in connection with any fault which is not covered by this Agreement.

11.9 The Customer shall reimburse any reasonable travel or subsistence expenses incurred by Smoothwall where such expenses are incurred wholly and exclusively for the purpose of providing on-site support as part of the Products or Services, provided that any request for reimbursement is in the form of a proper invoice accompanied by appropriate receipts

11.10 All Prices and any additional charges payable under this Agreement are exclusive of delivery, packaging, shipping, carriage, insurance, Value Added Tax (VAT) and any similar taxes, revenue or excise tax, import duty (including brokerage or customs clearance fees), or any other applicable Taxes. All such Taxes are payable by the Customer, but if paid by Smoothwall for any reason, Customer shall reimburse Smoothwall on demand.

11.11 To cover credit card processing costs, Smoothwall will apply a 4% surcharge to any invoice greater than £3,000 settled with a credit card, unless expressly prohibited by applicable law or merchant services agreement.

12. Payment Terms

12.1 Subject to any special terms set out in the Quotation, Smoothwall may invoice the Customer for the full Price of the Products and Services calculated over the full term of the Agreement on or at any time after the first delivery or part delivery of the Products and Services, unless:

(a) the Products are to be collected by the Customer, whether by physical collection from premises or by downloading of the Software, Open Source Software and Third Party Software; or

(b) the Customer wrongfully fails to take delivery of the Products, and in either case Smoothwall shall be entitled to invoice the Customer for the full Price at any time after Smoothwall has notified the Customer that the Products are ready for collection.

12.2 The terms of payment shall be within 30 days of the date of the invoice unless otherwise expressly stated on the Quotation, whether or not delivery has taken place or title in the Hardware has passed to the Customer.

12.3 The Customer shall make all payments under this Agreement in full without any set-off, counterclaim, deduction or withholding and without withholding or deduction of, or in respect of, any Tax unless required by law. If such Tax withholding or deductions is required, the Customer shall pay to Smoothwall such additional amount as will ensure that Smoothwall receives the same total amount that it would have received if no such withholding or deduction had been required.

12.4 Time for payment of the Price shall be of the essence of this Agreement.

12.5 If the Customer fails to make payment in full of any invoice on the due date, the whole of the balance of the full Price of the Product and Services then outstanding shall become immediately due and payable and, without prejudice to any other right or remedy available to Smoothwall, Smoothwall shall be entitled to:

(a) terminate this Agreement or suspend any further deliveries of Products or Services (whether ordered under the same contract or not) to the Customer until payment has been made in full;

(b) appropriate any payment made by the Customer to such of the Products or Services (or the Products or Services supplied under any other contract between the Customer and Smoothwall) as it thinks fit (despite any purported appropriation by the Customer);

(c) charge interest on the amount outstanding from the due date to the date of receipt by Smoothwall (whether or not after judgment), at the annual rate of 8 % above the base lending rate from time to time of Bank of England Late Payment Reference Rate, accruing on a daily basis and being compounded quarterly until payment is made, whether before or after any judgment. Alternatively Smoothwall reserves the right to claim interest under the Late Payment of Commercial Debts (Interest) Act 1998;

(d) make a storage charge for any undelivered Hardware at its current rates from time to time;

(e) stop any Products in transit and bar any downloading of any Software, Open Source Software, Third Party Software, configuration, categorisation or malware definition files; and

(f) disable and disrupt use of any Products including all Software or Third Party Software already delivered to the Customer.

12.6 Smoothwall reserves the right to withdraw at any time any credit terms previously granted, with the whole of the Customer’s account immediately becoming due for payment.

13. Warranty

13.1 Smoothwall warrants that:

(a) the Products (excluding the Third Party Hardware, Opens Source Software and Third Party Software) will conform in all material respects with the standard specification for a period of 90 days from the date the Products are delivered or made available for collection;

(b) the Customer shall have the right to possess, and use, the Products (except Third Party Hardware, Open Source Software and Third Party Software) in accordance with the terms of this Agreement and that possession and use shall not be disturbed by a third party except to the extent set out in this Agreement;

(c) it shall use reasonable efforts to ensure that all Products (except Third Party Hardware, Open Source Software and Third Party Software) supplied by it are, at the date of delivery, virus free;

(d) Services will be supplied by Smoothwall:

(i) with reasonable skill and care; and

(ii) by means of appropriately qualified and skilled personnel; and (e) Smoothwall Hardware supplied by it will be free from material defects.

13.2 In relation to Third Party Hardware, Smoothwall shall use reasonable endeavours to pass on to the Customer the warranty terms provided to it by the supplier of the Third Party Hardware.

13.3 Warranties in respect of:

(a) Open Source Software are contained in the Open Source Software Licence applicable to that Open Source Software and not in this clause 13; and

(b) Third Party Software are contained in the Third Party Software Licence applicable to that Third Party Software and not in this clause 13.

13.4 If any Smoothwall Hardware is materially non-compliant with its applicable standard specification (including any defects in materials and workmanship) during the Warranty Period, such Smoothwall Hardware will be repaired or replaced only in accordance with and subject to the limitations of the Hardware Limited Warranty.

13.5 If any Software is materially non-compliant with its applicable standard specification during the Warranty Period, Smoothwall will take such reasonable remedial action in relation to such Software in accordance with and subject to the limitations of the Software Licence.

13.6 Nothing in this clause 13 will be construed as a warranty or condition that the operation of any Products or Services will be uninterrupted or error free. Customer understands and accepts that any software (and information technology and communications products generally) may have errors and may encounter unexpected problems, and accordingly Customer may experience downtime and errors in the use of the Products or Services. Customer will put in place reasonable internal procedures and processes to enable it to minimise any inconvenience and any adverse impact of any such downtime or error.

13.7 Each party acknowledges and agrees that no other party (nor any person acting on a party’s behalf) has made any representation or other inducement to it to enter into this Agreement, except for representations or inducements expressly set out in this Agreement. Without limiting the generality of this clause 13.7, Customer acknowledges that:

(a) no promise, representation, warranty or undertaking has been made or given by Smoothwall, or any person on its behalf, in relation to the capacity, uses or benefits to be derived from, or any other consequences of or benefits to be obtained from the Products or Services, or any other goods or services provided under this Agreement, except as expressly set out in this Agreement;

(b) Customer has relied on its own skill and judgement in deciding to acquire and use the Products and Services and to enter into this Agreement;

(c) the Products and Services have not been developed to meet the Customer requirements and they may not be capable to achieve any specific results intended by the Customer whether or not they have been communicated to Smoothwall by the Customer; and

(d) it will have no remedy in respect of any untrue statement or representation (unless such statement or representation was fraudulent) made to it upon which Customer relied in entering into this Agreement and that its only remedy (if any) in respect of such a statement or representation can be for breach of contract, and/or in respect of any fraudulent misrepresentation made by Smoothwall.

13.8 Except as specifically set out in this clause 13, Smoothwall disclaims and excludes all other conditions, warranties, or other terms which might have effect between the parties or be implied or incorporated into this Agreement or any collateral contract whether express or implied, statutory or otherwise, including but not limited to the warranties of description, design, satisfactory quality and fitness for a particular purpose, or arising from any previous course of dealing, usage or trade practice in relation to the Products and Services.

14. Proprietary Rights

14.1 The Customer hereby acknowledges that:

(a) any Proprietary Rights in any Product or Service, supplied hereunder shall at all times and for all purposes vest and remain vested in Smoothwall or the third party supplier to Smoothwall including the licensors of the Open Source Software and the Third Party Software; and

(b) it shall not acquire any title to any Software, Open Source Software or Third Party Software.

14.2 Smoothwall grants to the Customer the Software Licence in respect of the Software and uses reasonable endeavours to procure for the Customer the Open Source Software Licence in respect of the Open Source Software and the Third Party Software Licence in respect of the Third Party Software.

14.3 The Customer hereby undertakes to fully comply with the Software Licence, Open Source Software Licences and the Third Party Software Licences supplied and delivered by Smoothwall (including if so required the execution and return of a Third Party Software Licence).

14.4 The Customer is hereby notified that failure to comply with the Software Licence, Open Source Software Licences and the Third Party Software Licences or to execute and return a Software Licence could result in either the Software Licence, Open Source Software Licences or the Third Party Software Licences being revoked or in the case of the Third Party Software Licence not being executed and returned being refused to be granted by the proprietary owner of the Third Party Software.

14.5 Smoothwall hereby acknowledges that Proprietary Rights in any program code, data and documentation provided to Smoothwall, its agents or servants by the Customer in respect of work to be done by Smoothwall, its agents or servants shall at all times and for all purposes vest and remain vested in the Customer or a third party supplier to the Customer. The Customer undertakes to grant or procure the grant from its third party suppliers a licence for Smoothwall to use all such program code, data and documentation for the purpose of providing the Products and perform the Services.

15. Confidentiality and Publicity

15.1 Each party undertakes in relation to the other party’s Confidential Information to maintain the same in confidence and not to make any commercial use thereof or use the same for the benefit of any third party other than pursuant to this Agreement and to treat the Confidential Information at all times in accordance with the Privacy and Data Protection Requirements.

15.2 Each party shall notify the other party if any of its staff connected with the provision or receipt of the Products or Services becomes aware of any unauthorised disclosure of any Confidential Information and shall afford reasonable assistance to the other party, at that other party’s reasonable cost, in connection with any enforcement proceedings which that other party may elect to bring against any person.

15.3 The terms of this Agreement may not be disclosed by the Customer (other than to its legal advisors) without the prior written consent of Smoothwall.

15.4 The obligations of confidentiality under this clause 15 shall not apply to any information or material which the recipient party can prove:

(a) was already known to it prior to its receipt thereof from the disclosing party;

(b) was subsequently disclosed to it lawfully by a third party who did not obtain the same (whether directly or indirectly) from the disclosing party; or

(c) was in the public domain at the time of receipt by the recipient party or has subsequently entered into the public domain other than by reason of the breach of the provisions of this clause 15 or any obligation of confidence owed by the recipient party.

15.5 Smoothwall may refer to the Customer as being a client of Smoothwall in customer reference lists, sales presentations and in legally required communication with a public authority or any other legally required disclosure, but shall not refer to the Customer in any advertising or press release without the prior written consent of the Customer.

15.6 The provisions of this clause 15 shall remain in full force and effect notwithstanding any termination of this Agreement.

16. Data Protection

16.1 The following definitions apply:

(a) the terms “data controller”, “data processor”, “data subject” and “processing” bear the respective meanings given them in the Data Protection Act 1998, and “data protection principles” means the eight data protection principles set out in Schedule 1 to that Act;

(b) “Personal Data” means the personal data of a data subject.

(c) Customer Personal Data and Smoothwall Personal Data mean any Personal Data provided by or on behalf of the Customer or Smoothwall, respectively.

16.2 Each party undertakes to the other to comply with its obligations as data controller and data processor as may be applicable under the Privacy and Data Protection Requirements.

16.3 Smoothwall may in the course of providing the Services collect and process logging data of the Customer’s employees. Smoothwall undertakes to process such Customer Personal Data only and in compliance with the Customer’s instructions from time to time.

16.4 The Customer acknowledges that Smoothwall is under no duty to investigate the completeness, accuracy or sufficiency of the Customer’s instructions or the Customer Personal Data.

16.5 Each party acknowledges that for the purpose of business efficacy to maintain contact and communication details the Customer is passing Customer Personal Data to Smoothwall and Smoothwall is passing Smoothwall Personal Data to the Customer. Each party undertakes as recipient and data controller of such Personal Data to comply with its respective obligations under the Privacy and Data Protection Requirements.

16.6 The Customer acknowledges that the Services provided by Smoothwall do not involve access to or receipt of any Customer Personal Data for the purpose of the processing of such Customer Personal Data on behalf of the Customer as data controller. The Customer shall ensure as data controller of the Customer Personal Data adequate physical and logical barriers in its business and its IT infrastructure that Smoothwall and its representatives, employees or contractors, when performing the Services, are not given access to and are not provided any Customer Personal Data for the purpose of processing on behalf of the Customer.

17. Indemnities

17.1 Smoothwall agrees to indemnify, hold harmless, and defend the Customer against any and all claims, costs, and expenses (including without limitation reasonable lawyer’s fees) relating to or arising out of any assertion of infringement of rights granted pursuant to the Software Licence in respect of the Software provided to Smoothwall, save to the extent such a claim is caused by any breach by the Customer of the Software Licence.

17.2 The Customer further agrees to indemnify, hold harmless, and defend Smoothwall against any and all claims, costs, and expenses (including without limitation lawyer’s fees) relating to or arising out of:

(a) any breach by Customer of the terms and conditions of the Software Licence, Open Source Software Licences and the Third Party Software Licences;

(b) any assertion of infringement of rights in respect of program code, data and documentation provided to Smoothwall, its agents or servants by the Customer in respect of work done by Smoothwall, its agents or servants in accordance with the instructions of the Customer;

(c) any Smoothwall performance or non-performance pursuant to the instructions of the Customer or its authorised representatives; or

(d) any assertion by a third party that any data or information provided to Smoothwall its servants or agents by the Customer is libellous or defamatory.

18. Limits of Liability

18.1 Except as expressly stated in clause

18.2:

(a) Smoothwall shall not in any circumstances have any liability for any losses or damages which may be suffered by the Customer (or any person claiming under or through the Customer), whether the same are suffered directly or indirectly or are immediate or consequential, and whether the same arise in contract, tort (including negligence) or otherwise howsoever, which fall within any of the following categories:

(i) special damage, even though Smoothwall was aware of the circumstances in which such special damage could arise;

(ii) loss of profits;

(iii) loss of anticipated savings;

(iv) loss of business opportunity;

(v) loss of or goodwill;

(vi) loss of, or damage to (including corruption of), data, provided that this clause 18.1 (a) shall not prevent claims for loss of or damage to the Customer’s tangible property that fall within the terms of clause 18.1 (b) or any other claims for direct financial loss that are not excluded by any of categories (i) to (vi) inclusive of this clause 18.1(a);

(b) the total liability of Smoothwall, whether in contract, tort (including negligence) or otherwise and whether in connection with this Agreement or any collateral contract, shall in no circumstances exceed a sum equal to the Price payable by the Customer.

18.3 The exclusions in clause 13.6, clause 13.7, clause 13.8 and clause 18.1 shall apply to the fullest extent permissible at law but Smoothwall does not exclude liability for:

(a) death or personal injury caused by the negligence of Smoothwall, its officers, employees, contractors or agents;

(b) fraud or fraudulent misrepresentation;

(c) breach of the obligations implied by section 12 of the Sale of Goods Act 1979 or section 2 of the Supply of the Goods and Services Act 1982; or

(d) any other liability which cannot be excluded by the applicable law.

19. Force Majeure

Neither party shall be in breach of this Agreement nor liable for delay in performing, or failure to perform, any of its obligations under this Agreement if such delay or failure is occasioned by any act of God, fire, flood, storm or other inclement weather, earthquake, act or omission of government or state, war or other hostilities, acts of terrorism, explosion, civil commotion, insurrection, embargo or prevention from or hindrance in obtaining any energy or other similar supplies, industrial dispute affecting a third party for which a substitute third party is not readily available, or any other circumstance which is beyond the reasonable control of the affected party. In such circumstances the affected party shall be entitled to a reasonable extension of the time for performing such obligations. If the period of delay or non-performance continues for 10 weeks, the party not affected may terminate this Agreement by giving 30 days’ written notice to the affected party.

20. Termination

20.1 Without prejudice to any rights that have accrued under this Agreement or any of its rights or remedies, either party may at any time terminate this Agreement and/or the Support Services with immediate effect by giving written notice to the other party if:

(a) the other party fails to pay any amount due under this Agreement on the due date for payment and remains in default not less than 14 days after being notified in writing to make such payment notwithstanding the provisions for late payment in clause 12;

(b) the other party commits a material breach of any term of this Agreement (other than failure to pay any amounts due under this Agreement) and (if such breach is remediable) fails to remedy that breach within a period of 60 days after being notified in writing to do so;

(c) the other party repeatedly breaches any of the terms of this Agreement in such a manner as to reasonably justify the opinion that its conduct is inconsistent with it having the intention or ability to give effect to the terms of this Agreement;

(d) the other party suspends, or threatens to suspend, payment of its debts or is unable to pay its debts as they fall due or admits inability to pay its debts or is deemed unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986;

(e) the other party commences negotiations with all or any class of its creditors with a view to rescheduling any of its debts, or makes a proposal for or enters into any compromise or arrangement with its creditors other than for the sole purpose of a scheme for a solvent amalgamation of that other party with one or more other companies or the solvent reconstruction of that other party;

(f) a petition is filed, a notice is given, a resolution is passed, or an order is made, for or on connection with the winding up of that other party other than for the sole purpose of a scheme for a solvent amalgamation of that other party with one or more other companies or the solvent reconstruction of that other party;

(g) an application is made to court, or an order is made, for the appointment of an administrator or if a notice of intention to appoint an administrator is given or if an administrator is appointed over the other party;

(h) the holder of a qualifying floating charge over the assets of that other party has become entitled to appoint or has appointed an administrative receiver;

(i) a person becomes entitled to appoint a receiver over the assets of the other party or a receiver is appointed over the assets of the other party;

(j) a creditor or encumbrancer of the other party attaches or takes possession of, or a distress, execution, sequestration or other such process is levied or enforced on or sued against, the whole or any part of its assets and such attachment or process is not discharged within 14 days;

(k) any event occurs, or proceeding is taken, with respect to the other party in any jurisdiction to which it is subject that has an effect equivalent or similar to any of the events mentioned in clause 20.1(d) to clause 20.1(j) (inclusive);

(l) the other party suspends or ceases, or threatens to suspend or cease, to carry on all or a substantial part of its business.

20.2 For the purposes of clause 20.1(b), material breach means a breach (including an anticipatory breach) that is serious in the widest sense of having a serious effect on the benefit which the terminating party would otherwise derive from:

(a) a substantial portion of this Agreement; or

(b) any of the obligations set out in clause 8.4, clause 14.3, clause 15 or clause 22, over the term of this Agreement. In deciding whether any breach is material no regard shall be had to whether it occurs by some accident, mishap, mistake or misunderstanding.

20.3 Either party may terminate this Agreement in accordance with clause 19.

20.4 Smoothwall may, without prejudice to its other rights or remedies, terminate this Agreement immediately by notice to the Customer, if the Customer:

(a) undergoes a change of Control which does not result in Control passing to a company that, immediately before the change in question, was an Affiliate of the Customer;

(b) sells all of its assets or is merged or re-organised in circumstances where it is not the surviving entity; or

(c) disputes the ownership or validity of Smoothwall’s Proprietary Rights.

20.5 Subject to the terms of this Agreement, any termination of this Agreement pursuant to this clause shall be without prejudice to any other rights or remedies a party may be entitled to hereunder or at law, and shall not affect any accrued rights or liabilities of either party.

21. Effects of Termination

21.1 Other than as set out in this Agreement, neither party shall have any further obligation to the other under this Agreement after its termination.

21.2 Any provision of this Agreement which expressly or by implication is intended to come into or continue in force on or after termination of this Agreement, including clause 1, clause 8, clause 14.1, clause 15 to clause 18 and clause 22, shall remain in full force and effect.

21.3 Termination of this Agreement, for any reason, shall not affect the accrued rights, remedies, obligations or liabilities of the parties existing at termination.

21.4 Notwithstanding its obligations in this clause 21, if a party is required by any law, regulation, or government or regulatory body to retain any documents or materials containing the other party’s Confidential Information, it shall notify the other party in writing of such retention, giving details of the documents and/or materials that it must retain.

21.5 On termination of this Agreement for any reason, the Customer’s right to receive the Products or Services (including all rights granted under the Software Licence, Open Source Software Licence and Third Party Software Licence) shall cease automatically and Smoothwall shall be entitled to disable or disrupt use thereof and each party shall as soon as reasonably practicable:

(a) return, destroy or permanently erase (if and as directed in writing by the other party) any documents, handbooks, CD-ROMs or DVDs or other information or data provided to it by the other party containing, reflecting, incorporating or based on Confidential Information belonging to the other party and the Customer shall destroy and permanently erase (if and as directed by Smoothwall) the Software, Open Source Software and Third Party Software. If required by the other party, it shall provide written evidence (in the form of a letter signed by its managing director no later than 30 days after termination of this Agreement that these have been destroyed and that it has not retained any copies of them (except for one copy that it may use for audit purposes only and subject to the confidentiality obligations in clause 15);

(b) return all of the other party’s equipment and materials, failing which, the other party may enter the relevant premises and take possession of them. Until these are returned or repossessed, the party in possession shall be solely responsible for their safe-keeping.

21.6 All sums payable to Smoothwall under this Agreement shall become due immediately on its termination, despite any other provision of this Agreement. This clause 21.6 is without prejudice to any right to claim for interest under the law, or any right under this Agreement.

22. Export and/or Re-export Limitation

22.1 Where the Products are supplied for export from the United Kingdom, the provisions of this clause 22 shall (subject to any contrary terms agreed in writing between the Customer and Smoothwall) override any other provision of these conditions.

22.2 The Customer shall be responsible for complying with any legislation governing:

(a) the importation of the Products into the country of destination; and

(b) the export and re-export of the Products, and shall be responsible for the payment of any duties on it.

22.3 Unless otherwise agreed in writing between the Customer and Smoothwall, the Products shall be delivered free on board the air or sea port of shipment and Smoothwall shall be under no obligation to give notice under section 32(3) of the Sale of Goods Act 1979, safe to the extent that any Software, Opens Source Software or Third Party Software is delivered by being made available online for downloading.

22.4 Having regard to the current statutory or other United States, United Kingdom or European Union regulations in force from time to time and, in the case of Products manufactured in the United States of America or containing software or technology originating in the United States of America, to the current export rules and regulations of the United States Department of Commerce in force from time to time and regardless of any disclosure made by the Customer to Smoothwall of an ultimate destination for any Products, the Customer will not export or re-export directly any Products without first obtaining all such written consents or authorisations as may be required by any applicable government regulations.

23. General

23.1 Notices

(a) Any documents or notices given hereunder by either party to the other must be in writing. (For the purposes of this clause a notice shall be deemed to be in writing if it is in the form of a printed or hand-written letter or other document, or in the form of an email message). Any such notice shall be deemed to have been duly given:

(i) if by letter may be delivered personally or by recorded delivery or registeredpost and in the case of post will be deemed to have been given 2 working days after the date of posting (and in proving such service, it shall be sufficient to prove that such communication was properly addressed, stamped and put in the post); or

(ii) if sent by email on a Business Day and during the business hours of 9:30 am to 4:00pm at the time it is transmitted to the relevant email box specified below.

(b) Any notice sent pursuant to clause 23.1(a)(ii) which would have been deemed to be duly delivered under the requirements of the relevant paragraph except that it was not sent at a time which was during business hours on a Business Day shall be deemed to have been duly delivered on the commencement of business hours on the Business Day immediately following the day on which it was sent.

(c) Documents or notices shall be delivered or sent to the addresses or email address of the parties set out in the Quotation or to any other address or email address notified in the normal course of trading in writing by either party to the other for the purpose of receiving documents or notices after the date of this Agreement.

23.2 Waiver

No forbearance, delay or indulgence by either party in enforcing its respective rights shall prejudice or restrict the rights of that party, and no waiver of any such rights or of any breach of any contractual terms shall be deemed to be a waiver of any other right or any later breach.

23.3 Severance

If any term or clause or any part of any term or clause of this Agreement is prohibited, void, invalid or otherwise unenforceable, the term or clause, or the relevant part of the term or clause, will be deemed to be severed to the extent that it is prohibited, void, invalid or unenforceable but the remainder of that term or clause (and the whole of this Agreement) will remain in full force and effect. In the event of any deemed severance pursuant to this clause 23.3, the parties shall use all reasonable endeavours to agree within a reasonable time upon any lawful and enforceable variations to this Agreement that may be necessary in order to achieve, to the greatest extent possible, the same commercial effect as would have been achieved by the clause, or the part of the clause, in question.

23.4 Assignment

(a) The Customer shall not, without the prior written consent of Smoothwall, assign, transfer, charge, sub-contract or deal in any other manner with all or any of its rights or obligations under this Agreement.

(b) Smoothwall may at any time assign, transfer, charge, sub-contract or deal in any other manner with all or any of its rights or obligations under this Agreement.

23.5Third Party Rights

No one other than a party to this Agreement, their successors and permitted assignees, shall have any right to enforce any of its terms.

23.6 No Partnership or Agency

Nothing in the Contract is intended to or shall operate to create a partnership between the parties, or to authorise either party to act as agent for the other, and neither party shall have authority to act in the name or on behalf of or otherwise to bind the other in any way (including without limitation the making of any representation or warranty, the assumption of any obligation or liability and the exercise of any right or power).

23.7 Entire Agreement

(a) This Agreement constitutes the entire agreement between the parties and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter.

(b) Each party acknowledges that in entering into this Agreement it does not rely on, and shall have no remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this Agreement.

(c) Each party agrees that it shall have no claim for innocent or negligent misrepresentation or negligent misstatement based on any statement in this Agreement.

23.8 Governing Law

This Agreement and any disputes or claims arising out of or in connection with it or its subject matter or formation (including without limitation non-contractual disputes or claims) are governed by and construed in accordance with the law of England and Wales.

23.9 Jurisdiction

Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this Agreement or its subject matter or formation (including non-contractual disputes or claims).

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